Here is what I was able to find from today's information on SGA
Goldstar Research:
$$$E-MAIL: ted@isdn.net or Fax (615) 371-1899 FOR QUESTIONS or COMMENTS$$$
SGA GOLDSTAR WHISPER STOCKS...THURSDAY, JUNE 12, 1997 Internet Home Page
Location - sgagoldstar.com
KNICKERBOCKER CO., INC.: (KNIC) $6 1/8 Up 1/8 and traded on the NASDAQ Stock
Exchange.... We brought you Knickerbocker for the first time yesterday and if what we're hearing
about Knickerbocker's 38% ownership in Pure Energy Corp. is on the up and up, this one could be
a real sleeper. The company's core business is the sale of products such as collectibles, teddy bears,
dolls, toys, environmental systems, jewelry, fragrances, and clothing on QVC, Home Shopping
Network, and Value Vision. However, the company also owns a 38% interest in a private company
by the name of Pure Energy. Pure Energy makes an alternative fuel from agricultural waste. The
project was funded by the Dept. of Energy at Princeton University. It is the only alternative fuel to
receive a patent. The U.S. Patent Office has issued a Notice of Allowance for claims covering
PEC's alternative motor fuel. The patent is expected to formally be issued within the next several
months, but my source says the patent may be issued before the end of June and that within three
months after the issuance of the patent, Pure Energy will become a public company. Princeton
University owns patent rights to the fuel and last year granted an exclusive license to Pure Energy to
commercialize the fuel on a worldwide basis. In anticipation of international opportunities, Pure
Energy recently has approved the filing of corresponding patent applications in a number of foreign
countries.
Once Pure Energy's alternative fuel is approved by the Dept. of Energy as an alternative fuel, the
company will receive a tax credit for somewhere between $.40 cents to $.55 cents per gallon,
substantially reducing the production costs to the company. The company's alternative fuel reduces
pollution by 60% to 80% versus the use of gasoline. As many as 100,000 automobiles will be
manufactured in 1998 by the big three auto makers which will burn alternative fuels. However, a
regular automobile can be retrofitted to burn Pure Energy's alternative fuel for a cost of only $50.00.
Pure Energy's first pilot plant will be operational in August of this year and will be producing fuel for
fleets in California. DLJ is the investment banker for Pure Energy and DLJ owns 5% of the
company. My source believes it will be the investment banking firm of DLJ that will bring the
company public. The chairman of Knickerbocker has gone on record as stating that he believes
Knickerbocker's valuation could increase by as much as $450 million once Pure Energy goes public,
because of the company's 38% ownership. With 18 million shares outstanding in Knickerbocker, do
your own math to come up with a valuation for KNIC. My guess is we've got a sleeper on our
hands!! For additional information, call Knickerbocker at 714-858-3661. |
